Gopee-Scoon: Government injects US $100m to help local businesses

The Government has increased the availability of foreign exchange for the business sector, says Trade and Industry Minister Paula Gopee-Scoon.

At the opening of Massy Stores Brentwood, Chaguanas, Gopee-Scoon said the retail sector plays an important part of revitalisating the economy, and the supply of forex has been increased through EximBank.

“This week, Cabinet approved an increase by US $100 million to the facility for importers and manufacturers for the purchase of basic foods, pharmaceuticals and other related essential items in response to the covid19 pandemic.

“The new total aggregate amount approved since inception for this purpose is now US $530 million.

“Additionally, an increase of US $100 million to the facility to facilitate allocation to local manufacturing and exporting companies was approved. The new total aggregate amount approved since inception is now US $450 million.”

Gopee-Scoon said the retail sector’s input to the economy was critical, as 2019 Central Statistical Office data showed it had about 8,656 businesses and contributed nearly 13 per or $20.3 billion annually to the country’s Gross Domestic Product (GDP).

In the face of rising food prices, she said the Government continues to monitor the external factors which were beyond its control.

“We have been working proactively to monitor and address rising food prices to bring some relief. One such measure is the zero-rating of basic food items. VAT was removed on an expanded list of food items as announced in the fiscal 2022 national budget presentation.

“Other measures include the suspension of the common external tariff on basic food items, the rollout of an agriculture stimulus package, strengthening linkages between industry and agriculture to promote greater synergies between industry and the domestic agriculture sector, and the implementation of a food price monitoring mechanism by the Consumer Affairs Division.”

Gopee-Scoon said it was unfortunate there is still a high reliance on imported goods, and urged for the consumption of local foods.

She added that the Government continued to facilitate economic recovery through targeted investments in areas such as manufacturing, business process outsourcing and agro-processing, distribution, food and beverage, information and communications technology, agriculture, and hotel and tourism.